12.11 -0.43 (-3.58%) Sell

SOI is a falling knife, continues to bleed every investor trying to catch it

13 min read

SOLARIS OILFIELD INFRASTRUCTURE, INC. ranked among the worst performers today. It delivered -3.58% to close at 12.11. During the last week it delivered -2.1% and saw a maximum drawdown of -4.45% before bouncing back.

[Themes containing SOI]

SOI is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +28.41% for investors.


SOI has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Jun, 2017 to 5 Jan, 2018. Over the last 1 year 7 months and 1 days, SOI underperformed the SP500 index on 48% days. Which indicates that on days SOI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SOI was mostly loss making and delivered on average -0.48% per day. It's best return during this period (of +10.68%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.74%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -25.3% of investor capital.

The last 12 months saw SOI's investors making profits in 4 months and incurring losses in 8 months. SOI was less consistent in delivering monthly returs than SP500 index. SOI was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -30.05% compared to -7.28% returned by SP500 index in Oct 2018. SOI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both SOI and SP500 index significantly outperform during months when quarterly/annual results are announced.

You know you are on the road to success if you would do your job, and not be paid for it.
-- Oprah Winfrey

SOI is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SOI's volatility from 14 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SOI has significant positive skewness in it's return distribution. This indicates that investors can expect SOI to recover from drawdowns quickly. Which makes SOI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SOI has more chance of extreme outcomes than the SP500 index. Therefore, SOI must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than SOI.

On a general note (since you are interested in SOI), three instruments that are extremely volatile are GNK, NVCN and OPNT. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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